Fintech and insurance partnerships drive innovation in secure e-commerce

B2B trade is going digital, opening new doors for businesses. But merchants face roadblocks to offering their customers online payment options and taking full advantage of the benefits. Issues such as establishing an online sales platform, manage fraud, and changing risk assessment processes as more buyers that are less familiar to them make smaller purchases—can deter companies from selling online. Merchants need secure payment solutions providers (PSPs) that can help them overcome these obstacles.

This is where Buy Now Pay Later (BNPL) can come in, and how partnerships with fintech companies allow us to provide innovative, flexible and secure solutions so corporates can offer their customers deferred payment options without being exposed to bad debt.  

Partnerships with fintech companies complement our traditional trade credit insurance offer, and are their natural extension in online trade. Where the fintech partner will bring the know-how for secure online payment transactions, Allianz Trade brings its credit intelligence, risk assessment and collection expertise.

Granting deferred payment to your customers is an undeniable competitive advantage. But before doing so, you have to make sure that you will be paid afterwards. Information is the key, first to identify any risk of fraud (fake identity, embezzlement), then to evaluate the solvency of the customer. The complementary knowledge of fintechs around KYC practices and the expertise of insurers in instant credit risk analysis serve merchants’ business goals by helping them grow their sales while not exposing their cash flow to non-payment risk.

Partnerships with fintech companies also give us further insight into the “payment world,” enabling us to provide our clients with more precise information and valuable advice.

Indeed, our BNPL offer, and our partnerships with fintech companies, allow us to collect and analyze data around each transaction, and each buyer – this insight into the payment world means an even sharper image of risks. If a buyer regularly buys online using the same payment method, we can see their day sales outstanding (DSO) and identify trends. We can then provide our customers with insurance coverage adapted to their buyer’s payment behaviors.

Predictive analysis is the heart of our business: our mission is to identify non-payment risk before it affects our customers. As such, data captured through our API that enriches our predictive intelligence strengthens our customers’ business strategies. Coupled with our existing database, which includes credit risk information about over 80 million companies around the world, additional insight into online transactions strengthens the support we can give our customers.

Bringing the best value to customers starts with understanding every business's risks, growth strategies, and pain points. Only then can we offer the best support, and the most valuable insight. At Allianz Trade we've embraced BNPL partnerships to bring more information, risk mitigation and value to our customers.

Because we are the most advanced credit insurance player in terms of technological capabilities, we are the leading provider of online credit solutions. Our BNPL partnerships keep us at the forefront of innovation while enabling our customers to develop e-commerce securely.